"The Government needs to postpone this and have another think about how they go about it," Mr Whan said.

"People are nervous about this. The community didn't know a bill was coming in to allow the reuse of graves and it's something that needs a lot more community consideration.

"We've certainly heard feedback from people that they don't like the idea, that they're concerned that it will be lower-income families who are virtually forced to renewable tenure graves because they won't be able to afford a permanent grave.

"Obviously people worry about whether or not someone is going to be there in 25 years to renew their tenure on the grave to keep the family's history alive on that grave stone."

But Primary Industries Minister Katrina Hodgkinson says the legislation will simply formalise renewable tenures which have been operating in an unregulated manner since the 1990s.

"Sydney is expected to run out of burial space within 30 to 40 years, now renewable tenure in cemeteries will extend the life of existing cemeteries to make sure everyone has got access to affordable interment options," Ms Hodgkinson said.

"What we need to make sure of is that we've got controls and protections for people in the cemeteries and crematoria space.

"For the first time we're actually going to have one piece of legislation covering all aspects of crematoria and cemeteries, that's what this bill is seeking to do, with as much choice as possible."